The paint industry in Nigeria is a very competitive one. Numerous companies, both big and small, continuously push the boundaries through innovation in order to come up with the finest coat. Our company focus for this week, Chemical and Allied Products Plc, is one of such paint makers. But does the company have what it takes to survive and excel in a highly saturated market space? Well, let’s find out.

Corporate information about CAP Plc

Chemical and Allied Products Plc, which is also known as CAP Plc for short, is a Lagos-based chemical company specialised in the manufacturing and merchandising of paints. The NSE-listed company, which is a leader in its sector, has a wide array of products which are relatively preferred by builders and home owners across the country.

A look back at the company’s history

CAP Plc’s history is traceable to 1957, when the British-owned multinational, Imperial Chemical Industries Plc, established a subsidiary in Nigeria and named it ICI Exports Limited. But eight years afterwards and five years after Nigeria’s independence from Britain, the company’s name was changed to ICI Nigeria Limited.

It should be recalled that following Nigeria’s independence in 1960, a strong wave of nationalism and anti-western sentiments swept through every aspect of Nigeria’s socio-economic life. The military governments in place at the time even made two indigenization decrees (in 1972 and 1977) which sought to transfer ownership of western-owned companies into Nigerian hands.

In compliance with these decrees, the British owners of ICI Nigeria Limited began the process of divesting their stake in the company. It started with a 40% divestment during the aftermath of the 1972 indigenisation decree, and then it soon got to a total divestment of 60% following the 1977 decree. The shares were, of course, acquired by Nigerians investors. It should also be noted that it was during this time that the company’s name was officially changed to Chemical and Allied Products Limited through a special resolution that was reached by the new shareholders.

In the year 1991, the company became a publicly-quoted one, even as its equities were listed on the Nigerian Stock Exchange (NSE) the following year, 1992. Also in 1992, ICI Nigeria Limited divested its remaining 40% stockholding in CAP Plc, with UAC of Nigeria Plc buying up some 35.7% of the company’s shares. UAC’s shareholding in the company has been on the increase ever since, currently standing at 50%. This makes it the majority shareholder, with the remaining 50% shareholding privately owned by Nigerian investors.

The company’s many notable products

As expected, CAP Plc has grown over the years to become one of Nigeria’s leading paint manufacturers. In the same vein, it has a wide range of paint brands that meet the various painting needs of Nigerians.  Some examples of the company’s current product offerings include:

  1. Dulux Gloss
  2. Dulux Matt Emulsion
  3. Dulux Silk Emulsion
  4. Dulux Weathershield Smooth Textured
  5. Dulux Weathershield Text-matt
  6. Dulux Weathershield Textured
  7. Dulux Weathershield Ultra Textured
  8. Caplux Paint, etc.
Dulux weatherguard, one of the paint brands manufactured by CAP Plc.

The company’s target market

As one of the leading paint makers in Nigeria, CAP Plc has a target market that cuts across both private paint users and industrial ones. In other words, paints manufactured by the company are patronised by both everyday Nigerians seeking to paint their homes, as well as construction companies and real estate firms who build homes for the purpose of reselling.

FCMB ads 300 x 250

To meet the demand for their products by ensuring adequate distribution across the country, the company has strategic distributors in major states and cities in all the geopolitical zones of Nigeria. These include the major cities of Lagos, Abuja, Port Harcourt, Enugu, Kano, Ibadan, etc.

Deal book 300 x 250

The company’s board of directors

Cap Plc’s current Chief Executive Officer is Mrs. Oluwakemi Ogunnubi. She assumed office on the 1st of January, 2018, replacing the former CEO who resigned at the end of 2017. Mrs. Ogunnubi is a graduate of the Polytechnic of Ibadan and a chartered accountant. Prior to her appointment, she served in various capacities at UACN Group.

Standard chartered

Other members of the company’s board of directors are: Mr. Abdul Bello (Non-Executive Director), Mr Opeyemi Olukayode Agbaje (Non-Executive Director), Mr Solomon Ohiolei Aigbavboa, and Ambassador Kayode Garrick (Non-Executive Director).

Who are the company’s competitors? 

The company is in competition with the likes of Paints & Coatings Manufacturers Nigeria Plc, Meyer Plc, Berger Paint Nigeria Plc, Premier Paints Plc, and Portland Paints & Products Nigeria Plc. Note that these are paint manufacturers that are listed on the Nigerian Stock Exchange. Others include Infinity Paints International Limited, Intercolour Industries Limited, Precious Paints Nigeria Limited, Sloak Paints Nigeria Limited, Trump Coat Paint, Powerseal Nigeria Limited, etc.

Appraising the company’s recent financial performance

So far in 2018, CAP Plc has reported consistent financial growth, even better than the level of growth that was recorded during the comparable period in 2017. Revenue grew to N5.4 billion between January and September 2018, compared to the N4.9 billion worth of turnover that was recorded during the same period in 2017. Also, the company has reported a profit after tax of N1.2 billion for the third quarter of 2018, compared to N964 million that was reported during Q3 2017.

In conclusion…

It is safe to forecast that based on the company’s performance so far this year, it is poised to outperform its full-year 2017 financial report. The company had recorded a 4.40% revenue increase in 2017 (i.e., N7.1 billion compared to N6.8 billion), though profit declined by 6.53% to N1.4 billion down from N1.6 billion.

A room painted with CAP Plc paints


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